Before the Malls there was Via España

What was once the central commercial area in Panama City (pre-mega-malls) remains alive and thriving. The environs of Via Espana, between Via Brazil and Via Veneto, still contain many interesting shopping opportunities well worth checking out. Starting off at Via Brazil next to ARROCHAS is PASTAS FRESCAS. All types of Italian dishes are made from scratch on the premises. Containers are frozen for microwave or oven, and at noon each day they dispense a selection of hot food for takeout that is very popular and inexpensive. (A single portion of meat lasagna costs $1.75.) This shop is immaculate, and the sandwich board outside reveals the daily menu.

For pet owner s needs and services wander into ANIMALS AND PETS next to BLOCKBUSTER S. They have full vet and grooming care available as well as a huge stock of accessories for our four-legged, winged, or gilled friends! Parking is available directly in front. Windows allow viewing as adorable dogs are being clipped and bathed. Puppies for sale are housed in adequate kennels and are well treated as are the beautiful birds awaiting new homes.

David Zelcer is the general manager of RELOJIN, a large watch store containing 18 brands of time pieces ranging in price from $2.99 to $1,000. I observed David s excellent customer service when a friend needed to exchange a purchase. He offered her various options, and told me that after 35 years in business his company still emphasizes the importance of client satisfaction. They are the #1 specialist s in watches and operate a repair service encompassing all makes and manufacturers. The shop is located on the street across from Blockbuster s in Edificio Don Juan. Stop at the corner where Miguel Angel Morales has a table filled with bananas costing 15 cents per pound!

Bananas on sale near
Blockbuster.

Moving along with the traffic flow on the right hand side of the street you ll find LA FIESTA, a spacious venue devoted to wine and alcohol and their accompaniments. The staff is helpful, well informed, and the wine cellar in the back very dark and inviting. Further down, PASSARELA has an outlet that contains an entire wall of inexpensive hair and jewelry accessories as well as hip clothing for the young and young at heart. Sale racks abound bearing 50% off signs. Next door SEBASTIAN S displays daily clothing specials for men and women on sidewalk racks. I ve found unique Tee s and blouses at rock bottom prices.

A wine expert.

Multistoried PLAZA CONCORDIA houses a PANAMANIAN POST OFFICE which opens at 7AM. On the ground floor locate X SOLUCIONES, a family run shop offering many services for copying, printing, and graphic design needs. English is spoken and there are Internet stations as well as phone booths for international calls. This shop also specializes in duplicating architectural plans and blueprints.

The original GRAN MORRISON department store is at the foot of the pedestrian overpass next to EL REY. They have a large selection of greeting cards, books, and magazines in English. I found a wonderful Tai Chi kit there containing DVD, mat, booklet, CD, and sand ball for only $29.95. Their souvenir department is extensive.

The Ejecutivo restaurant off Via España: Patra's
personal recommendation.

Fall in love.

If anyone has not yet heard of the restaurant in HOTEL EXECUTIVO, walk, run, or drive there for a 24-hour-a-day breakfast, lunch, or dinner. The ambiance is quiet and conducive to conversation, the wait staff helpful and bilingual, and the food consistently of good quality. They serve killer waffles and French toast and also have a Sunday morning buffet. A parking lot is located behind the restaurant if slots beside it are filled. This tall, white, hotel is located a block down from the Marriot, or turn left at the ARROCHA sign after passing Via Veneto. A great place to refresh and refuel... HAPPY SHOPPING!

Property tax incentives

Still in limbo: revised 20 year exemption

By: Steven Rich, Marketing Manager for Panama Offshore Legal Services
www.pos-inc.com (507) 227 - 6645

One of the biggest incentives to purchase real properties in Panama was our unique 20-year property tax exemption, which saved homeowners thousands of dollars every year. International magazines, newspapers, and TV infomercials promoted Panama as the best real estate bargain from 2004 until last year when the 20-year property tax exemption law ended.

This law relieved buyers of homes and condos from 20 years of paying property taxes but it expired on August 31, 2007, which meant that only those properties with occupation permits prior to that date qualified. Some government officials defended the expiration by pointing out that the purpose for this exemption was to help get the real estate market on its feet. Now that Panama’s real estate market is booming, they say, this law has fulfilled its purpose.

Since last September, all new construction is subject to property taxes. All homes and condos whose construction began before August 31st will still carry their property tax exemptions. If you buy a 10-year-old condo or home, you will still have nearly 10 years remaining from the original 20- year property tax exemption.

When exemption expired last year, the entire real estate and tourism industry lobbied the government to extend the incentive. Panama s National Assembly complied and passed a law last December extending the 20-year property tax exemption until August 31, 2010. But President Torrijos apparently felt this was too long and vetoed it last February 25th.

Real estate agents and developers, disappointed with the veto, asked Panama s legislature to pass another law extending the exemption for a shorter period.

Will the president accept or reject this new law?
The National Assembly quickly responded by passing a new law extending this benefit for all new construction starting before July 1, 2009.

The entire real estate industry from developers, brokers, agents, construction companies to lawyers, and laborers favor extending the property tax exemptions. They do so because the real estate market is still hot, with Europeans beginning to discover the low real estate values Panama offers and also attracted by more direct flights between Panama and Europe.

Municipalities oppose the measure since they rely on local and property taxes to build and maintain parks and infrastructure.

Which is more important? Property taxes to benefit localities or to promote more real property construction?

Real estate professionals argue that encouraging more construction results in additional employment, sales taxes on supplies, higher immigration, more residents buying more goods and services, additional income tax and/or capital gains taxes and property transfer tax revenues. In other words, an economic boost for the entire country.

Without this extension the numerous preconstruction condo building projects throughout Panama for which construction has not yet started would be at a disadvantage. Sales would suffer compared to condos with property tax exemptions. Assuming equal construction quality and amenities, would you rather pay the same price for a condo a little older with property tax exemptions or a brand new one with property taxes due every year?

In conclusion, Panama needs this extension to become law. While not as good as the rejected extension into 2010, this new proposed law is better than nothing.

National hero

World champion jockey hails from San Felipe

Juan Antonio Espinosa A.
Don Chocho

Winning the record-breaking race.

The world s best jockey of all times was born in Panama City. His name is Lafitte Pincay Jr. and he holds the world record for most wins ever: 9,530. His career lasted over 30 years and brought continuous attention to Panama from around the world.

Lafitte Pincay Jr. was a humble kid from the poor San Felipe neighborhood. At an early age his father took him to watch races at The Remon Race track in Panama City. At 15 he got a job as a groom and hot walker at the track. There was no pay. He only needed a chance. And he got it. He became a jockey at 17, when he obtained his riding license. He rode for two years in Panama and his first win was on May 19, 1964.

Celebrating victory with champagne.

He followed in the footsteps of his predecessors. He made history in the U.S. when Fred Hooper hired him in 1966.

In the U.S., he began his career at Arlington Park in Chicago, recording his first victory on July 1, 1966 and winning eight of his first 11 races. His talent for riding became obvious when he won seven Breeders Cups within just 61 mounts.

He won four Triple Crown races, one Kentucky Derby and a record-tying three consecutive Belmont Stakes. He was two-time winner of the Arlington Million. He is the only six-time Eclipse Award winner and was inducted into the Racing Hall of Fame in 1975.

He broke the record of U.S. jockey Willie Shoemaker on December 10, 1999 when he won his 8,834th race, which seemed impossible then.

Pincay with the trophy.

On April 29, 2003 he announced his retirement following the aggravation of an injury he suffered the previous month. He retired with 9,530 wins, more than any other jockey.

American film star Kevin Costner was the narrator of a documentary about Lafitte released in 2006 called "All About Winning".

Panamanian jockeys have been extremely successful. Names such as Braulio Baeza, Manuel "Ma e" Icaza and Jorge Velazquez, were top names worldwide. They served the as examples that Lafitte Pincay Jr. followed, but it was Laffit more than anyone who helped Panama earn it s name as "the cradle of the best jockey in the world."

The guidebooks and travel magazine articles lie. They all imply that English is generally spoken around Panama. While that is indeed the case in the lobby of the Intercontinental Hotel, if you venture out, it is soon evident the cab drivers, police officers and store clerks are citizens of a Spanish speaking nation. Not that there s anything wrong with that. It makes a lot of sense, except to a few grumpy old ex-pats and pushy tourists, who either can t or refuse to even make an attempt to stimulate their atrophied brains, by trying to learn anything new.

It s difficult to write about the language barrier, since it is almost impossible to represent my accent, mispronunciations and incorrect vocabulary in a manner that would be any more intelligible to the reader than it is to the person to whom I m attempting to speak Spanish.

For example, at the gas station, I release the little door to the gas tank and then step out of the car confidently and speak monosyllabically to the attendant."Lleno," I say while looking him straight in the eye to establish sincerity, "noventa uno, por favor." A simple, straightforward attempt to purchase the least expensive gasoline available though certainly not cheap at over $3.60 a gallon.

Usually, the gas guy gets a worried look on his face and inquires tentatively, "Full?"

"Si," I reply reassuringly.

I m then almost always required to point to the nozzle of the desired grade, before the fellow responsible will risk putting any petrol in my vehicle. (Diesel would be a disaster.) Obviously, I think I m saying something, but dozens of guys aren t hearing it. Sometimes, I would appreciate some credit for at least making an attempt before reverting to pantomime, but I often end up still pointing.

I do have better luck at restaurants , but only if I stick to the practiced and familiar, like"Dos cervezas frias"; or "corvino de ajillo"; or "cenicero"; all followed by a cheerful "por favor." My score is about 50-cincuenta with the ashtray, but I would like to try something other than sea bass with garlic, though it is delicious here in Panama.

Once, at a resort, my wife ordered breakfast, with a pleasantly surprising result. She requested "huevos revueltos con cebollas y pepinos." Pretty good, huh? The waitress was noncommittal but the cook came out and said, "Muy, bueno," which seemed to be a bit of an overreaction to a relatively standard combination of scrambled eggs with onion and peppers. When the dishes arrived, we discovered that pepino means cucumber, which is actually quite tasty with onions and eggs. Pimiento means the green vegetable pepper.

And, so it goes, from the drug store to the liquor store; from Novey Center to the Do-It Center; and all the centers in between. If Americans are going to get on their high horses about English as the official language in the States, they shouldn t be so surprised that some people here in Panama actually expect us to learn the native language beyond buenos dias or adios . Of course, they could help by not talking so very, very rapidly, but that s they way they speak. Bienvenidos a Panama.

Part III of The Panama Railroad saga

A nostalgic crossing, even today

By: Ted James

On December 1879, Count Ferdinand de Lesseps toured the line with a substantial party before launching his effort to build the Panama Canal. On the excursion was New York World reporter, J. C. Rodrigues, who was as fascinated by the "lively Frenchmen" and their leader as the group was by the passing scenery.

The Panama Canal Railroad today offers views from a dome-roofed car.

His description of the scenery vividly describes Panama and the railroad route as it remains in large part today.

"A yellow butterfly would cause a commotion in these excitable people. But you do not imagine what an event the first approach to the Chagres River was. The car was pandemonium. The train had to be stopped and the Chagres - the enemy - had to be inspected."

The point where they first saw the river was Gatun, a native village seven miles from Colon, at the confluence of the Rio Gatun, the place Godin de Lepinay had picked for his great Chagres dam for the next several miles they had crossed a broad mangrove swamp on tracks only inches above the water. Between the swamp and Gatun, the growth of vegetation was as exuberant as any on earth. Giant cedro trees towered a hundred feet or more in the air, their smooth gray trunks like pillars of concrete. Trailing vines, blossoming creepers, scarier hibiscus, orchids, crimson passionflowers, parasitic plants of every imaginable variety, hung wherever one looked. Bamboo crowded the tracks in clumps the size of a house. It was as if the train were running along the bottom of a narrow green canyon that went winding on and on with only a thin trace of bright sky to be seen straight up, in the gap between the crowns of the trees. Most of the passengers got out for a look, and the overwhelming green of the landscape, the intensity and infinite variety of green under a cobalt-blue sky, caught them unaware."

Views from the railroad.

"Like so many before, they had come to Panama with little thought of being stirred by landscapes. That the place could be so breathtakingly beautiful struck them as a singular revelation. Le plus belle region du monde, de Lesseps exclaimed in a letter to Charles," Rodrigues commented.

Who was on the de Lesseps train? None other than an ageing Col. Totten, with whom de Lesseps stood enthralled at the rear of the train listening to the engineer s stories of the building and its difficulties — very similar in many ways to those that would soon hamper and eventually defeat de Lesseps himself.

Today the railway goes over
Lake Gatun.

With all stops en route the trip had lasted six hours. In his letter to the Bulletin, de Lesseps said they did it in three. Today the trip takes about one hour and twenty minutes on rails totally re-laid to the international standard gauge of four feet six inches from the original of five feet.

After the French control of the railway, it was bought by the US in their successful completion of a canal. The honor goes in large part to US railroad engineer, John F. Stevens, who saw the need to rebuild the railroad and make it an integral part of the canal building project if the undertaking were to succeed. His major rebuilding effort took place in 1909.

The railway remained under US government control until the Panama Canal Zone was turned over to Panama along with the railway in 1979.

Once again, it slid into decline as the military dictatorship of Panama utilized its labor payroll for political payoffs, eventially bringing it to a standstill and leaving it to the mercy of rust and weeds.

It stayed that way until 1998 when the Panamanian government officially signed it over to today s Panama Canal Railway Co. (PCRC), a joint venture of Kansas City Southern Industries and Lanigan Holdings, LLC of Hazelcrest, Ill., which now provides ocean-to-ocean cargo transshipment and passenger services between the Atlantic and Pacific oceans on a railway that runs parallel to the Panama Canal. PCRC has completed reconstructed and modernized the 143-year old transcontinental railroad and the 47.6-mile rail link today serves as an efficient intermodal connection for world commerce and complements the existing transportation infrastructure provided by the Canal, the Colon Free Trade Zone and the port terminals.

In 1998, the government of Panama awarded the joint venture under exclusive 25-year concession to operate the railway. Financing for the new railroad was finalized in November 1999, and reconstruction of the Panama Canal Railway began in February 2000. It was completed in 2001 and both freight and passenger service resumed again later in that year.

PCRC’s subsidiary, The Panarail Tourism Company, provides executive commuter and tourist passenger service across the isthmus. The trip takes passengers on a scenic tour, passing through the rain forest and along the side of the canal for much of the trip with comfort not even imagined in 1855.

A look at politics

The race for Panama's presidency

General elections in Panama take place every five years and the next election will be in May of 2009. Here is a look at the major political parties and a few of the front runners for president.

The current governing party is PRD (Democratic Revolutionary Party), and its colors are red, white and blue. This party was founded in the 70’s by General Omar Torrijos, the father of the current President, Martín Torrijos Espino.

The three main candidates who will probably run in the PRD Primary elections for president are:

Ernesto Perez Balladares - “El Toro”: He was elected President in 1994. His government was responsible for major infrastructure projects such as widening the Pan-American highway to four lanes, the North and South Corridors in Panama City (which brought about development in Punta Pacifica), and the Rod Cariew National Stadium. He started his long political career with General Torrijos. During his term he pushed for legislation that would allow him to be re-elected immediately after his presidency, which resulted in a majority of “NO” votes.

Juan Carlos Navarro.

Juan Carlos Navarro: He is currently in his second term as the Mayor of Panama City, having been re-elected in 2004. He has been active in politics from a very young age, and started his involvement with The National Environmental Agency (ANAM) in the late 80’s and early 90’s. Many people in Panama remember his appearances on TV commercials at the time, about protecting National Parks. As Mayor of Panama City he has gained many supporters.

Balbina Herrera.

Balbina Herrera - “La Chola”: Though it is not yet official that she will run for president, engineer Balbina Herrera is currently the Minister of Housing, and was also elected President of the PRD in recent internal elections. Balbina Herrera is known for her dedication to the working class, and has been a Legislator (or Deputy as they are now called), and President of the National Legislative Assembly as well. She initially stated her intention to run for mayor of Panama City but many people are asking her to run for president.

The other large political force in Panama is the Panameñista Party. Its colors are yellow, purple and red. The party was originally founded by Dr. Arnulfo Arias. Among its past presidents are, of course, Dr. Arnulfo Arias, three time president of Panama; Guillermo Endara Galimany, who was president after the U.S. Military Operation in 1989; and Mireya Moscoso, wife of Arnulfo Arias, who was elected in 1999 and became the first female President of Panama.

The main candidates for the Panameñista Party are:

Alberto Vallarino: He is the former Primer Banco del Istmo (now part of the HSBC Group) and is on the Board of Directors of several Panamanian companies. He received a BS in industrial engineering and an MBA, both from the prestigious Cornell University.

Juan Carlos Varela: Although not widely known as a politician, Varela comes from the famous Seco Herrerano family, the Varela Hermanos. He has not been involved in politics for long, but the family is originally from the town of Pese, Herrera, and therefore has support among farmers and people in the interior of Panama.

Another significant party is the Cambio Democrático (Democratic Change) Party, which is currently leading the polls. Its colors are green, on a white background, with pink “CD” letters. It's founder is well known Panamanian businessman Ricardo Martinelli. The party has never occupied the presidency, as it was only founded in 1999. It has gained popularity and supporters quickly, specially among young people who are not satisfied with the two traditional parties.

Ricardo Martinelli.

Ricardo Martinelli, a savvy businessman, is the Presidential candidate for his party Cambio Democrático. His previous political campaign, “Wearing the People's Shoes” did not win him the Presidential Elections in 2004, but it stuck in the hearts and minds of many Panamanian voters, specially those who are underpriviledged and live in poverty. Martinelli is leading on many popularity polls as a favorite Presidential Candidate. Martinelli himself comes from a well known family in the town of Soná, in the province of Veraguas. His origins are with the farmers and with the agricultural sector, although his trajectory as a successful businessman makes him a very diverse candidate who has targetted many sectors of the Panamanian society during his now 10-year old political campaign.

The PRD and the Panameñista Party will choose one candidate each, who will likely run against Martinelli to occupy the Presidency of Panama in 2009.

As the time approaches, The Visitor will keep readers informed on each candidate's political platform for the country.

Real estate trend

Luxurious new condo hotels

The luxurious spa at Trump Ocean Club. The condos offer
quality accommodations for medium length stays with
an elevated standard of living.

Panama City currently has about 17,000 hotel rooms and occupancy rates are high. The city is full of stories of endless searches for a last minute hotel room when someone arrives without making hotel reservations in advance. Some builders are responding to the need by combining hotel units into their condominium towers.

Condo hotels offer an array of benefits to the guests as well as investors who want to get in on the hotel game in town without having to build the hotel themselves. Buyers can have time allotted in their hotel unit as well as take part in the ownership of the hotel, which will pay them dividends. The hotel presence in the buildings in turn raises the level of service that condominium buyers experience living in the condo hotel. In the Trump Ocean Club in Punta Pacifica, residents of the condominiums will be able to take advantage of the amenities of the hotel while living in their own condos.

Condo hotel model suite of The Oriental.

Costa del Este is a new planned community to the east of the capital city and is accessible by toll road. Here, just inside the entrance, Pacific Developers recently launched a mixed use condo hotel called The Oriental Residences. It boasts ?ve star hotel service for the hotel units and the condominiums as well. The Oriental will have a health club, spa, restaurant, room service and a business center.

In the heart of the city, Procasa is launching another five star mixed use building, The Orchid Residences. It will have 180 studio and one bedroom units Located in the banking district, The Orchid promises to be a true oasis in the city - dedicating 8,000 square feet just to the spa where guests and residents can enjoy a massage, aromatherapy, the gym or the heated pool. The services at the building will be run by Benchmark Hospitality International.

This is Benchmark’s first contract in the country. CEO Burt Cabanas is pleased to begin operations in Panama with Procasa. Benchmark is a US company that runs 30 hotels internationally. They have offices in Chile and Japan.

Trump Ocean Club Spa Rock Garden.

Income producing hotel-quality real property is a win-win situation for owners, developers and the tourism industry. The Panama Tourism Bureau (IPAT) recently consulted with residential tourism experts from Spain who were giving seminars in Costa Rica, Panama and Colombia. Their recommendation for development of the tourism industry in Panama is precisely what these and so many other developers are offering: quality accommodations for medium length stays where tourists can enjoy an elevated standard of living for their money and have access to all the goods and services necessary.

Investors can investigate the condo hotel market by contacting a licensed real estate broker. Contact the developers mentioned in this article at their websites: www. trumpoceanclub.com, www.pacificdeveloperspanama.com,
www. procasa.com.